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EU to punish rights abuses in supply chains, with forced labour ban to follow
- Bloc will require large companies to ensure their supply chains are free of human rights and environmental abuses, with fines for failing to comply
- But the issue of forced labour, particularly complex for firms active in China, is not covered by the EU, which will address it with a separate ban
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Finbarr Berminghamin Brussels
Large companies operating in the European Union will be slapped with large fines for human rights and environmental abuses in their supply chains, new rules to be unveiled on Wednesday show.
But the legislation does not include a ban on the import or marketing of goods made using forced labour, according to a draft document seen by the South China Morning Post.
Instead, the European Commission will develop a separate forced labour ban, which could be years in the works, in the latest twist in an internal rigmarole over how to handle the thorny issue of goods made in the western Chinese region of Xinjiang, where observers and governments allege the widespread use of forced labour.
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A proposed ban was announced to great fanfare by European Commission President Ursula von der Leyen last September, and was widely seen as targeting Xinjiang. China denies there is any forced labour in the region.
02:38
Global brands face backlash in China for rejecting Xinjiang cotton
Global brands face backlash in China for rejecting Xinjiang cotton
However, little guidance was handed down from the top, leaving departments to squabble over who should be responsible for a ban that would be “a nightmare” to administer, sources said.
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